Income Tax: You can easily save TDS on rent and interest income, just follow these tips
Income Tax: Paying tax is necessary for all taxpayers of the country. If any taxpayers do not pay tax then the Income Tax Department takes strict action against them. The Income Tax Department has created a tax slab. The tax has to be paid on the same basis. What should you do if you do not fall in that tax slab and TDS is deducted?
Every person falling under the tax rules made by the Income Tax Department has to pay tax on time. If the Income Tax Department has also created a taxable limit. If your income falls within this limit, you do not have to pay tax. At the same time, if the income exceeds the taxable limit then you have to pay tax. While paying tax, you should ensure that you pay the tax on time. If you do not do this then an income tax notice may also come in your name.
TDS is applicable on your salary, rent, and interest received from the bank. TDS is deducted from these taxpayers. If a salaried person has a bank account or has income from rent, then his TDS is deducted. This TDS is calculated on the basis of the income tax slab. The rate of TDS is decided under the Income Tax Act 1961.
The rate of TDS is decided on the basis of income and its source along with PAN. This means that if a taxpayer has not given PAN card information, his TDS rate will be different. If your income is less than taxable and your TDS is being deducted then you can use Form 15G/H to correct it.
Both these forms 15 g/h are for two different age groups. Form 15G is used by persons below 60 years of age. Whereas Form 15H is used by senior citizens. Both these forms are used by taxpayers who are not taxable.
Form 15G/H is a self-declaration form. This form has been designed for TDS deduction. Through this form, any resident below 60 years of age can avail of a deduction of Rs 2.5 lakh under the old tax system. At the same time, people below 80 years of age get a rebate of up to Rs 3 lakh.
Under the new tax system, if a senior citizen fills Form 15H and his income is less than Rs 7 lakh, then he does not have to pay any tax.
These forms are divided into two groups. You enter the correct information in this form. In this form, you will have to give your personal information. You should take special care of one thing that your name and date of birth are correct. In this form, you will have to give information about all your income sources. For this, you will have to fill out separate forms. If you have 4 bank accounts then you will have to fill 4 forms.
